First time buyer? 6 protection myths worth busting

Buying your first home is a huge moment. After all the saving, viewing and paperwork, you finally get the keys.

It is also the biggest financial commitment most people ever make. And that is exactly why it is worth thinking about protection: the cover that could help keep a roof over your head if life does not go to plan.

Plenty of people put it off. Research by the Financial Conduct Authority¹ found that 58% of adults do not hold any protection, such as life insurance, critical illness cover or income protection.

Often, that is because of a few common myths. Here are six we hear a lot:

1. “I’m young and healthy, so I don’t need it”
2. “It’s too expensive”
3. “My employer would look after me”
4. “I’m single, so it doesn’t matter”
5. “Insurers never pay-out”
6. “I’ll sort buildings insurance later”

Let’s look at each one.

Myth 1: “I’m young and healthy, so I don’t need it”

It is great to feel fit and well, and most people buying their first home do. But illness and accidents do not only happen to other or older people.  They can happen to anyone.

The reality: Critical illness cover pays a tax-free lump sum if you are diagnosed with a serious illness covered by your policy. Critical Illness policies cover cancer, heart attack and stroke at a set level of severity, and many cover more.²

There is an upside to being young and healthy, too. Generally, the younger and healthier you are when you take out cover, the lower the price is likely to be.

Myth 2: “It’s too expensive”

After a deposit, solicitor’s fees and moving costs, money could feel tight. That is completely understandable.

The reality: The cost of cover depends on things like the type and amount of cover, how long it lasts, your health and whether you smoke.³ That means it could be shaped around your budget. It is worth finding out the actual cost before deciding it is out of reach.

Myth 3: “My employer would look after me”

Some employers are very generous. Others offer the legal minimum.

The reality: If you are off sick, Statutory Sick Pay is up to £123.25 a week, for up to 28 weeks.⁴ Would that cover your mortgage and bills? For many people, it would not.

Income protection could help. Insures typically pay between 50% and 65% of your income if illness or injury stops you working.⁵

Some employers also offer “death in service” cover, which pays out a sum linked to your salary. But that cover ends if you change your job.³ If you are self-employed, you have no sick pay to fall back on at all.⁵

Myth 4: “I’m single, so it doesn’t matter”

It is true that if nobody relies on you financially, you may not need as much life insurance.

The reality: You still have a mortgage to pay, and you are the only one paying it. If you could not work for months because of illness or injury, who would keep up the payments? That is where income protection and critical illness cover could matter most.

And if you have bought with a partner, a friend or a family member, they could be left with the whole mortgage if something happened to you. This applies whatever your relationship looks like.

Myth 5: “Insurers never pay out”

This is one of the most common worries, and it is easy to see why. You tend to hear about the claims that go wrong, not the ones that go right.

The reality: According to the Association of British Insurers, 97.9% of claims on individual protection policies were paid in 2025. Insurers paid out £7.84 billion in protection claims across the year.⁶

One of the best ways to help your claim go smoothly is to be completely honest on your application, especially about your health.

Myth 6: “I’ll sort buildings insurance later”

With so much going on, this one could slip through the net.

The reality: If you have a mortgage, you are usually required to have buildings insurance.⁷ Your lender will tell you when it needs to be in place, and this is often from exchange of contracts, not the day you move in.

The amount of cover is usually based on what it would cost to rebuild your home, which is often less than what you paid for it.⁷

The main types of cover at a glance

• Life insurance: pays a lump sum if you die during the policy. Decreasing term cover goes down over time, alongside a repayment mortgage. Level term cover stays the same throughout.³
• Critical illness cover: pays a lump sum if you are diagnosed with a serious illness covered by your policy.²
• Income protection: pays a regular income if you could not work because of illness or injury.⁵
• Buildings insurance: covers the structure of your home,and is usually a requirement of your mortgage.⁷

Not everyone needs every type. What suits you will depend on your income, your savings, any benefits you already have and who relies on you.

Sort it alongside your mortgage

The best time to think about protection is while you are arranging your mortgage. You already have your numbers in front of you, and it means one less thing to worry about once you have moved in.

If we are doing your mortgage, your mortgage broker can connect you with one of our protection advisors (Kelly or Amanda) and then they will talk you through your protection options together, in plain English and with no pressure. Sometimes the answer is that you need very little, and that is good to know too.

Did you know though, you don’t have to wait until you are buying a property to sort out income protection or critical illness cover – if you are renting and saving for a deposit – this type of assurance cover is equally as important.

Get in touch with the team to book an appointment.